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Sonic Debuts World's First DVD on Demand System for Electronic Sell-through of Movies and Television Content

LAS VEGAS --(Business Wire)-- Jan. 5, 2006 New AuthorScript DVD on Demand Software Development Kit Enables Secure Download and Burn of Premium Video on Set-top, Desktop, and Enterprise Platforms
Sonic Solutions(R) (NASDAQ:SNIC) today introduced AuthorScript(R) DVD on Demand(TM)(DoD), the world's first software development kit (SDK) for secure, managed download-and-burn of video to DVD. Building on Sonic's years of experience as the leading provider of DVD creation technology to Hollywood studios, software vendors, and PC manufacturers, as well as the provider of download-and-burn solutions for online music vendors such as AOL, Yahoo! and MusicMatch, AuthorScript DoD enables user-friendly, provider-controlled sell-through of DVDs in industrial, retail kiosk, personal computer, and set-top box environments.

As a new, low-cost, high-margin channel for distributing premium content, electronic sell-through of content to DVD holds tremendous promise for content owners, electronic distributors, cable and satellite operators, equipment vendors, retailers, and consumers. For set-top box manufacturers, AuthorScript DoD makes it possible to convert downloaded video into DVDs that can be sold directly to consumers. For PC software providers and internet video distributors, the SDK offers a secure, reliable solution for converting internet-delivered video into DVDs that can be burned at home and played on any standard set-top or desktop player. For kiosk providers and industrial manufacturing system integrators, the AuthorScript DoD SDK makes it possible to create a virtual DVD inventory solution for retailers, enabling them to tap into an immense library of content not currently available via conventional DVD release.

"By combining the flexibility of managed, content-protected downloads with the universal playability of DVD, AuthorScript DVD on Demand promises to open vast new business opportunities for owners and distributors of video content and new enjoyment for consumers," said Richard Doherty, research director of the Envisioneering Group. "The availability of a DVD-value-added, secure, low-cost electronic distribution channel positions content owners to market back-catalog material which might otherwise remain gathering dust in the vaults. With Sonic's new SDK, they'll be able to supplement the industry's existing hit-driven DVD business model with a 'long tail' approach in which substantial additional revenues flow from net-enriched DVDs."

Complementing existing download-to-own solutions, AuthorScript DVD on Demand frees content from the hard drive or home network, providing consumers with DVD's play-anywhere portability while maintaining content-owner control over the process. According to a survey by Scientific-Atlanta, the ability to copy content to DVD is the feature most desired by experienced set-top DVR users, while research by Parks Associates (Global Digital Living, 2005) shows that the most powerful driver of electronic video sell-through will be the ability to own and play purchased content freely.

"Electronic DVD sell-through requires meticulous integration of Hollywood content creation, electronic distribution, and DVD burning technology, and there is no other company that can bring to bear the combination of across-the-board expertise and trusted industry relations needed to make this work," said Jim Taylor, senior vice president and general manager of Sonic's Advanced Technology Group. "Today, Sonic technology powers the sector-leading DVD tools for Hollywood studios, video professionals, and consumers, delivering maximum functionality and compatibility. With AuthorScript DVD on Demand, we are applying our experience and innovation to expand DVD's versatility and create a profitable new channel for the industry."

Platforms now ready for AuthorScript DVD on Demand include a growing universe of DVD-enabled set-top boxes as well as over 130 million PCs equipped with DVD recorders. Potential distribution channels range from traditional retailers to cable operators and direct broadcast satellite providers as well as internet movie providers, online and traditional brick-and-mortar retailers.

"The ability to purchase and burn content to a DVD will give consumers much more flexibility and control over how they enjoy their downloaded movies, television shows, and much more," said Kevin Corbett, vice president of the Digital Home Group and general manager of the Content Services Group for Intel Corporation. "Sonic's announcement of AuthorScript DVD on Demand is aligned with Intel's digital home vision of providing consumers with flexibility and choice in enjoying their content anytime, anywhere."

The Sonic AuthorScript DVD on Demand SDK is now available on an evaluation basis. For further information on licensing, contact Sonic at authorscript@sonic.com.